Sweden based telecommunication devices maker Ericsson has announced its plans to cut as many as 700 jobs at its UK division, thereby pointing to the possibility that the firm might just cease all functioning at its Central England facility.

Expected to come into action by mid-2010, the development is a part of Ericsson's ongoing drive to cut back on costs wherever possible, including in all overseas ventures. Once the firm rolls back its research and development and global service delivery activities from the Coventry unit, it will, in all likeliness, face its end.

"We have to work continuously to increase efficiency and lower our cost base whilst ensuring we deliver solutions designed to meet our global customers' needs", said Mats Granryd, Head of Market Unit North Western Europe at Ericsson.

Ericsson has asserted that its British customer base will not be affected by the development. As for the operations, the firm is looking to move them to "countries there are already significant scale and product synergies".